Redistribution Is Theft

Several recent studies of economic “inequality” have confirmed that 1% of the U.S. population holds roughly 38% of the nation’s asset wealth.  In addition, 1% of U.S. households earn roughly 17% of all pre-tax income.  And although these inequality findings are hardly new information for most economists, whether the inequality gaps have been widening or whether they hamper economic growth is still controversial. There is some evidence that the wealth and household income gaps may have widened in recent years, but the long-run trend is unclear.  Data from 1917 to 2012 demonstrate that wealth and income disparities rise and fall over time.  More importantly, there seems to be no obvious correlation or cause-and-effect relationship between widening inequality and, say, periods of sluggish economic growth.  In short, the U.S. economy has done well with wealth and income inequalities that both expand and shrink. Interestingly, most of the...(Read Full Article)